PBGC Draws the Curtain on § 4011 Notices, Making Way for Annual Funding Notice

• Identifying Information. Each Notice must specify the plan's name and plan number, the plan administrator's address and phone number, the plan's principal administrative officer, and the employer identification number (EIN) for each plan sponsor.
• Funding Status (Single-Employer Plans). The Notice must state whether the plan's funding target attainment percentage (FTAP) for the current plan year, and for the previous two plan years, is at least 100 percent. The actual FTAP must be provided for any of these years that it is less than 100 percent. Also, the Notice must give the values of the plan's assets and liabilities as reported on the plan's three most recent Forms 5500, as well as the values of the plan's assets and liabilities measured as of the last day of the plan year to which the Notice relates.
• Funding Status (Multiemployer Plans). The Notice must state whether the plan's funded percentage for the current plan year, and for the previous two plan years, is at least 100 percent. The actual funded percentage must be provided for any of these years that it is less than 100 percent. Also, the Notice must give the values of the plan's assets and liabilities measured as of the last day of the plan year to which the Notice relates and as of the last day of each of the previous two plan years. The Notice must disclose if the plan was in critical or endangered status for the plan year and, if it was, a summary of any funding improvement or rehabilitation plan that plan has adopted. Additionally, the Notice must include a statement describing how a person can obtain a copy of the plan's funding improvement or rehabilitation plan and the actuarial and financial data that demonstrate any action the plan has taken towards fiscal improvement.
• Projected Changes to Asset or Liability Values. The Notice must identify and explain any plan amendments, scheduled benefit increases (or reductions) or other known events taking place in the current plan year that will have a material effect on plan assets or liabilities for the year, and provide a projection to the end of the year of the effect on plan liabilities.
• Funding Policy. The Notice must include a statement of the plan's funding policy, as well as the plan's asset allocation (expressed as percentages of total assets) as of the end of the plan year to which the Notice relates.
• Number of Participants. The Notice must provide the number of active participants, and the number of participants who are (i) retired or separated from service and receiving benefits; and (ii) retired or separated from service and entitled to future benefits.
• Plan Terminations. For single-employer plans, the Notice must provide a summary of the rules governing plan terminations. For multiemployer plans, the Notice must summarize the rules governing reorganization or insolvency, including the limitations on benefit payments.
• PBGC Guarantee. The Notice must give a general description of the plan's benefits that are eligible for the PBGC guarantee, an explanation of the limits on the PBGC guarantee, and the circumstances under which these limits apply.
• Availability of Form 5500 Annual Report. The Notice must state that copies of the plan's Form 5500 filing are available upon request, the DOL's Web site, and the plan sponsor's Intranet Web site. (The PPA requires the DOL to begin posting certain information from Form 5500 filings on its Web site, and plan sponsor's to begin posting the same information on their Intranet sites, in 2008.) In the case of a multiemployer plan, the Notice also must state the plan administrator will provide, upon written request, a copy of the Form 5500 to any labor organization representing participants and beneficiaries and to any employer obligated to contribute to the plan.
• ERISA § 4010 Reporting. The Notice must disclose whether the plan sponsor was required to file an ERISA § 4010 report with the PBGC for the plan year to which the Notice relates.

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Copyright 2007, Deloitte.

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